2018 (7) TMI 684 - AT - Central Excise

CENVAT Credit - input services - Hazardous Waste Management and Handling Services - denial on the ground of nexus - Held that - The removal of waste from the factory premises is extremely essential for carrying out the manufacturing activity as well as for complying with the Pollution Control Norms - the disallowance of credit, alleging that the said services do not have nexus with manufacturing activity, is unjustified - appeal allowed - decided in favor of appellant.

Summary

Issues:
Denial of credit on Hazardous Waste Management and Handling Services.

Analysis:
The appellants contested the denial of credit on Hazardous Waste Management and Handling Services, arguing that the service is essential for removing waste from the factory premises to prevent pollution and environmental hazards. They availed the services of Tamil Nadu Waste Management Ltd. to comply with Pollution Control Norms. The appellant's counsel relied on a previous decision in the case of Rane TRW Steering Systems Ltd. vs. C.C.E. & S.T., LTU, Chennai. On the other hand, the respondent supported the findings in the impugned order.

The Tribunal considered whether the appellants are eligible for credit on Waste Removal and Management Services. It was argued that waste removal is crucial for manufacturing activities and environmental compliance. The Tribunal found the disallowance of credit unjustified, stating that waste removal services are integral to manufacturing activities and compliance with regulations. Citing the precedent in Rane TRW Steering Systems Ltd., the Tribunal held that the credit on Waste Collection and Removal Services should be allowed. Consequently, the impugned order disallowing the credit was set aside, and the appeal was allowed with any consequential reliefs.

This judgment highlights the importance of waste management services in manufacturing activities and environmental compliance. It emphasizes the nexus between waste removal services and manufacturing processes, ultimately allowing the appellants to claim credit for such essential services. The reliance on precedent strengthens the Tribunal's decision to overturn the denial of credit, ensuring fair treatment and recognition of the significance of waste management in industrial operations.